Rebound in goods inflation in CEE

Februarys inflation rate in the Eurozone eased to 2.4% from 2.5% in January, according to the flash estimate. As far as components are concerned, services are expected to have the highest annual rate in February (3.7%, compared with 3.9% in January), followed by food, alcohol & tobacco (2.7%, compared with 2.3% in January). Within the Eurozone flash estimate of HICP, Croatia, Slovakia, and Slovenia see the flash estimates, and in all three countries, inflation eased in February. Today, however, we also mention the development of goods and services inflation in the whole region. The latest available data is for January, but the rebound in the inflation of goods is quite apparent. The CEE8 average rose from 1.5% in September 2024 to above 3% in January 2025. Furthermore, inflation of services has been elevated. Level-wise, it has been moving sideways around 7%, which is more than twice as much as prior to 2022 and the inflation shock.